The property, which is set to be a 35-story retail and residential tower, is supposed to have 25 affordable units, but Lloyd Goldman, the property owner, has asked the city to allow him to contribute to the city’s Affordable Housing Trust Fund instead.

The City Council last night was set to vote on an agreement with Goldman that would have erased the affordable-housing obligation, which Goldman agreed to in 2006. But the city, which backed the measure, withdrew it at the last minute after it became clear that the council majority was leaning toward defeating it.

PADNA board member Kevin Pollack said in a statement that the proposal was drawn up without thought toward “the long-term impact” it would have on the Powerhouse Arts District.

Pollack said PADNA supports on-site affordable housing for 110 First St., and for the planned tower at 111 First St., which is also owned by Goldman.

“Moving affordable housing out of the project and into other neighborhoods only works to segregate the city more than it already has been,” he said. “The PAD is supposed to be an artist community and without affordable housing it's difficult for artists to live in the community, and then we are nothing but an artist neighborhood by name and name only.”

The two lots are the former locations of historic warehouses, one of which housed an artists enclave until 2005. The city’s 2006 agreement with Goldman came on the condition that the city eliminate certain height and density limits it had previously wanted to put on the two planned towers.

Corporation Counsel Bill Matsikoudis has urged the council to accept the revised deal with Goldman, saying it would be the only way to get construction moving on the tower. Developers who would otherwise partner with Goldman refuse when they learn there must be 25 affordable units, according to Matsikoudis.

Mayor Jerramiah Healy said today that job creation and the creation of affordable housing are both primary goals of his administration, and they would be realized if the 110 First St. project begins construction soon.

“We hope that this project can move forward in the very near future so that this land that has lain fallow for the past five years is turned into a productive parcel for the city,” he said.

In his statement, Pollack said 110 First St. is a “prime” location, and disputed Matsikoudis’ claim that it will remain vacant if the council doesn’t agree with Goldman’s terms.

“Someone will build there without being given the key to the city,” he said.